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Teamsters Object Lyft Settlement

Teamsters groups and several California Lyft drivers filed an objection this week to a proposed $27 million settlement in a class-action lawsuit over employee classification. In 2013 drivers sued the ride-sharing company, arguing Lyft had misclassified them as independent contractors when they should have been classified as employees. A district court judge approved the proposed settlement in June, but that didn’t satisfy a few drivers and several Teamsters groups.

An estimated 100,000 drivers could benefit from the payout and 40,000 have already filed claims, according the Los Angeles Times. In a statement Tuesday, Rome Aloise, president of the Teamsters Joint Council 7, blasted the proposed deal. “Lyft makes its profits by undercutting workers and taxpayers,” he said. “This is an unfair settlement and drivers have earned more and deserve better.”

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Source: Stephanie Ellis, Vice President of Sales at Nelson Compliance

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